01 March 2013
Sky to acquire Telefnica UK's broadband and fixed-line telephony business
British Sky Broadcasting Group plc (Sky) today announces that it has reached an agreement with Telefnica UK for the proposed acquisition of its O2 and BE consumer broadband and fixed-line telephony business. The transaction will make Sky the second-largest provider in the UK broadband market, building on its existing position as the UK's fastest-growing broadband and telephony business.
Telefnica UK's consumer broadband and fixed-line telephony customers, of which there are currently over half a million, will become Sky customers for those services on completion. By creating the UK's second-largest home broadband provider, the acquisition will deliver further advantages of scale for Sky's home communications business.
Under the terms of the agreement, Sky will pay a consideration of £180 million to Telefnica UK for the consumer broadband, home phone and line rental customers served by the O2 and BE brands. An extra contingent amount, not exceeding £20 million, may be payable dependent upon the successful delivery and completion of the customer migration process by Telefnica UK. Post completion, O2 and BE customers will be migrated onto Sky's fully unbundled network, supported by a nationwide all-fibre core, which reaches 84% of all UK homes.
Following sustained growth in demand for broadband and home telephony since it entered the home communications market six years ago, Sky has built a business with 4.2 million broadband customers and 4 million telephony customers (as at 31 December 2012). In that time, Sky has established itself as the UK's most popular triple-play provider with 3.6 million triple-play customers, one third of its base. This transaction will help Sky meet the growing demand from customers to take multiple products.
Jeremy Darroch, Sky's Chief Executive, said: Sky has been the UK's fastest-growing broadband and telephony provider since we entered the market six years ago. From a standing start in 2006, we have added more than 4.2 million broadband customers. The acquisition of Telefnica UK's consumer broadband and fixed-line telephony business will help us accelerate this growth.
We believe that the O2 and BE consumer broadband and telephony business is a great fit, with customers used to high-quality products and strong levels of customer service. We look forward to welcoming these new customers to Sky and giving them access to our wide range of high-quality products, great value and industry-leading customer service.
Ronan Dunne, Chief Executive of Telefnica UK, added: Sky offers great value, totally unlimited broadband which includes unlimited fibre services. As we focus on delivering best-in-class mobile connectivity, including next generation (4G) services, we believe this agreement is the best way of helping our customers get the highest quality home broadband experience from a leading organisation in the market.
This acquisition is the latest move by Sky to take advantage of the growth opportunity in home communications. Sky has added 382,000 customers (at 31 December 2012) for standalone home communications since the introduction of the service in 2010. In addition, Sky launched broadband and telephony products in the Republic of Ireland in February 2013 to further support organic growth.
The acquisition will be funded from existing cash reserves and is expected to be accretive to earnings per share in the second full year of ownership.
The acquisition is due to complete by the end of April 2013 and is subject to regulatory clearance.
-ENDS-
For more information:
Alice Macandrew, Sky
alice.macandrew@bskyb.com
Stephen Gaynor, Sky
stephen.gaynor@bskyb.com
Dave Massey, O2
dave.massey@O2.com
About Sky
Sky is the UK and Ireland's leading home entertainment and communications company. Around 40% of all homes have a direct relationship with Sky through its range of TV, broadband and home telephony services.
Sky is the UK's biggest investor in television content, investing more than £2.3 billion a year in channels such as Sky 1, Sky Atlantic, Sky Living, Sky Arts, Sky Sports, Sky Movies and Sky News. Around two-thirds of Sky's content spend is invested in the UK and Sky is the fastest-growing source of investment in original British programmes. More than 30 million people watch Sky content each week.
Alongside its commitment to offering customers a greater choice of high-quality content, Sky is a leading innovator. Customers enjoy total control and flexibility over their favourite TV through Sky+, watch TV on the move through Sky Go, and enjoy the best quality TV experience at home through High Definition and 3D.
Sky distributes its content broadly over several platforms, including satellite, cable, IPTV, mobile and WiFi. NOW TV, Sky's second consumer brand, builds on the company's leadership in internet TV. Sky is also the UKs fastest-growing home communications company and favourite triple-play' provider of TV, broadband and home phone.
Sky believes in making a wider contribution to the communities in which it operates by taking positive action on the environment, supporting grassroots sports and increasing access to, and participation in, the arts. Sky employs 23,000 people, has annual revenues of £6.8 billion and is estimated to support a £5.4 billion contribution to UK GDP. Sky is listed on the London Stock Exchange (BSY). www.sky.com/corporate
About O2
O2 is the commercial brand of Telefnica UK Limited and is a leading communications company with over 23 million customers read more about O2 at www.o2.co.uk/news. O2 runs 2G and 3G networks and was the first to trial 4G/LTE, reaching speeds of over 100Mpbs, as well as owning half of Tesco Mobile. It also
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
15/11/2026
Can VideoProc AI Really Reduce Noise and Enhance Blurry, Old Footage? Real-World...
14/11/2026
Longtime MLB Network employee David Maybrown passed away Thursday at the age of 57. David joined MLB Network in 2009 shortly after its launch, beginning as an i...
14/11/2026
Modular innovators introduce two guitar-based products
ADDAC System's recently introduced Four String Series makes it possible to integrate physical str...
14/11/2026
Marcelo Dai's Live Session Captured with URSA Cine Immersive
Brie Clayton November 14, 2026
0 Comments
Artist takes viewers on an immersive journe...
14/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
14/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
14/11/2026
Newest Lenses, Horizon Anamorphic Seminar & Guided Lens Character Experience Highlight Creative Possibilities
At the 2026 Toru CAMERIMAGE Film Festival, ZEISS...
14/11/2026
Sonnet Announces Black Friday Sale on Select Products
Brie Clayton November 14, 2026
0 Comments
WHAT: Sonnet Technologies is having a sale on a select...
14/11/2026
Berklee Alumni Shine at the 2026 Latin Grammy Awards This year's winners included songwriters, engineers, and performers who contributed to acclaimed reco...
13/11/2026
The UIM E1 Series wraps its third season this week with the Bombay Sapphire E1 Miami GP, Nov. 11-14, on Biscayne Bay at the Miami Seaplane Base on Watson Island...
13/11/2026
In-venue and creative video staffers at the professional and collegiate level ha...
13/11/2026
Singer-songwriter Benson Boone will headline entertainment for the Discover NHL Winter Classic between the Utah Mammoth and Colorado Avalanche at Rice-Eccles St...
13/11/2026
Blackmagic Design has announced the Blackmagic Ambisonic Microphone, a 7th order ambisonic microphone array that captures spatial audio for immersive video prod...
13/11/2026
SMPTE has announced that The Studio B&H and Riedel Communications will provide the video infrastructure and communications technology for the Solutions Hub at t...
13/11/2026
The Hollywood Professional Association (HPA) has announced the theme and program focus for the 2027 HPA Tech Retreat, which takes place Feb. 14-18, 2027, in La ...
13/11/2026
Football Manager 27 Touch is available on Apple Arcade starting today. The game ...
13/11/2026
MotoGP has announced a two-year media rights agreement with ESPN covering the Un...
13/11/2026
Apple Sports, the free iPhone app, has added the Ultimate Fighting Championship (UFC) to its lineup of supported sports, in time for Saturday's UFC 334. The...
13/11/2026
The NBA and Fanatics Studios, the joint venture between Fanatics and entertainme...
13/11/2026
ESPN held its annual EDGE Innovation Conference last night and offered up an ove...
13/11/2026
Regional sports network gives Ithaca College, SUNY Cortland students a platform to thrive
One of the biggest games in Division III college football will be pla...
13/11/2026
Studer-inspired 500-series PWM compressor unveiled
The HLabs range already includes a couple of Studer-inspired offerings in the form of the PRE169 and EQ16...
13/11/2026
Download Now!
To view the white paper, please enter the following details:
--
First Name* First Name
Company*
Country* Please select your countryA...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Blue Lucy, the workflow orchestration and integration platform for broadcasters, rights owners and localisation companies, today announced an integration with c...
13/11/2026
Krotos announces Black Friday offers on Studio Pro and Studio Max
Brie Clayton November 12, 2026
0 Comments
First-year annual plans start at US$195.99...
13/11/2026
Blackmagic Design Announces Blackmagic Ambisonic Microphone
Brie Clayton November 12, 2026
0 Comments
New 7th order ambisonic microphone with 108 MEMS...
13/11/2026
Meet the Berklee Student Setting Planetary Motion to Music With his compositional platform SoniKosmos, Javier Roqueni aims to make the universe the ultimate i...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , er...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , er...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Share
{alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...
13/11/2026
Amagi, the media industry cloud company, today announced a partnership with Golden Times Media Technology (stock code 920021.BJ), a Beijing-based media and tech...
13/11/2026
CGI (TSX: GIB.A) (NYSE: GIB), one of the largest independent IT and business consulting services firms in the world, together with its Malaysian partner, Cedar ...
13/11/2026
SMPTE, the home for media professionals, technologists and engineers, today announced that The Studio B&H and Riedel Communications will provide the video infra...
13/11/2026
iWedia, a global leader in connected TV software solutions, will present its software-first approach to DRAM optimization at Android TV APAC Summit 2026 in Bang...
13/11/2026
Beginning today, November 13, Apple HomeView is available for purchase at Apple Store locations, on the Apple Store online, and in the Apple Store app in select...
13/11/2026
From pediatric research to smart hospitals, AI is helping care teams spend less time on routine tasks and more time with patients.
Health systems and startups...
12/11/2026
Industry leaders examine how Dynamic Media Facility, Media eXchange Layer, and c...
12/11/2026
The junior Tar Heel is embracing the technical and creative challenges of live production while emerging as a leader and mentor in the control room...
01 March 2013
